The Denison City Council approved a series of budget amendments in a short public meeting Monday night to close out the 2017 fiscal year. With these amendments, the council approved the addition of nearly $992,000 in revenue and $864,000 in expenses.
“After the budget closes out, we like to go back and clean up our books as much as possible,” City Manager Jud Rex said before Monday’s meeting.
Rex said the additional revenues and expenses were discussed with city staff and the council as a part of the recent draft of the 2018 budget. Finance Director Renee Waggoner said these expenses did not impact the city’s current finances as they were already known and accounted for.
“This does not affect cash flow balance compared to the numbers that I sent out earlier as those were end-of-year numbers,” she said.
As staff discovered the additional revenues, the city elected to move forward some purchases and requests that were initially proposed for the 2018 fiscal year.
“Once we saw we were going to be ahead, we decided to move forward some of our purchases,” Rex said. Other changes in the budget reflected purchases that were budgeted for 2017 but will be moved on to next year.
Rex attributed the vast majority of the additional revenues to the city’s sales taxes receipts, which were up more than anticipated for 2017. This was attributed to a good economy, growth in the region, construction expenses and visitors from across the Oklahoma border.
“People have more money to spend, and they are spending that in Denison,” he said.
While the city’s expenses were $864,000 over initial budget, Rex noted that some of the expenses ultimately were canceled out by matching revenue sources. As an example, Rex said the $28,762 in the increased refuse collection was ultimately canceled out by an increase in trash collection revenue.
As a second example, Rex said $225,747 allocated to a new outsourced mowing contract represents cost savings to the city, as it was ultimately discovered that the contract cost less than the city conducting its own mowing services.
In a set of $455,357 of budget appropriations set for the current budget, the council approved $197,355 in public safety software upgrades and just over $42,000 in body cameras for the Denison Police Department’s patrol division. Unlike the amendments, Waggoner said these would affect the city’s cash balance, but they represented expenses that were allocated for 2017.
The budget amendments were approved unanimously with little discussion by the council. Council Member Michael Baecht was absent from Monday’s meeting.